Use the following information to answer this question. Windswept, Inc. 2017 Income Statement ($ in millions) Net sales $8,700 Cost of goods sold 7,340 Depreciation Earnings before interest and taxes Interest paid 405 955 82 Taxable income 873 Taxes 306 Net income 567 Windswept, Inc. 2016 and 2017 Balance Sheets ($ in millions) 2016 2017 2016 2017 Cash 150 $ Accounts payable 185 $1,180 $1,260 Accounts rec. 920 730 Long-term debt 1,000 1,265 Inventory 1,520 1,550 Common stock 3,210 2,900 Total $2,590 $2, 465 3,260 Retained earnings 460 710 Net fixed assets 3,670 Total assets $5,850 $6,135 Total liab. & equity $5,850 $6,135 What is the return on equity for 2017?
Use the following information to answer this question. Windswept, Inc. 2017 Income Statement ($ in millions) Net sales $8,700 Cost of goods sold 7,340 Depreciation Earnings before interest and taxes Interest paid 405 955 82 Taxable income 873 Taxes 306 Net income 567 Windswept, Inc. 2016 and 2017 Balance Sheets ($ in millions) 2016 2017 2016 2017 Cash 150 $ Accounts payable 185 $1,180 $1,260 Accounts rec. 920 730 Long-term debt 1,000 1,265 Inventory 1,520 1,550 Common stock 3,210 2,900 Total $2,590 $2, 465 3,260 Retained earnings 460 710 Net fixed assets 3,670 Total assets $5,850 $6,135 Total liab. & equity $5,850 $6,135 What is the return on equity for 2017?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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What is the return on equity for 2017?
Transcribed Image Text:Use the following information to answer this question.
Windswept, Inc.
2017 Income Statement
($ in millions)
Net sales
$8,700
Cost of goods sold
7,340
Depreciation
Earnings before interest and taxes
405
955
Interest paid
82
Taxable income
2$
873
Taxes
306
Net income
2$
567
Windswept, Inc.
2016 and 2017 Balance Sheets
($ in millions)
2016
2017
2016
2017
Cash
150 $
185
Accounts payable
$1,180 $1,260
Accounts rec.
920
730
Long-term debt
1,000
1,265
Inventory
1,520
1,550
Common stock
3,210
2,900
Total
$2,590 $2, 465
Retained earnings
460
710
Net fixed assets
3,260
3,670
Total assets
$5,850 $6,135
Total liab. & equity
$5,850 $6,135
What is the return on equity for 2017?
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